SECTION 12. Tax 11.35(1) and (2) are renumbered Tax 11.35(2) and (1) to conform to Legislative Council Rules Clearinghouse standards, and Tax 11.35(2)(b), as renumbered, is amended to correct an error regarding the $300 limit for entertainment as provided in s. 77.54(7m), Stats.
SECTION 13. Tax 11.35(3) and (5)(b) are amended to conform style to Legislative Council Rules Clearinghouse standards.
Tax 11.35(6)(a) is amended to clarify that the occasional sales exemption may apply to a nonprofit organization's sales at an admission event where that nonprofit organization is not sponsoring the event.
SECTION 14. Tax 11.97(1) is amended to conform punctuation and style to Legislative Council Rules Clearinghouse standards.
SECTIONS 15 AND 16. Tax 11.97(6)(a), relating to out-of-state companies engaged in business in Wisconsin, is renumbered Tax 11.97(6) to reflect the repeal of Tax 11.97(6)(b), and it is amended to reflect the change in title of Form A-101 and to remove the statement that there is no fee since a fee may apply under the business tax registration provisions that were adopted as part of 1995 Wis. Act 27.
Tax 11.97(6)(b) is repealed and set forth in a Note, since the material is informational rather than substantive.
Text of Rule
SECTION 1. Tax 11.001(intro.) is amended to read:
Tax 11.001(intro.) Chapter Tax 11 is applicable to the state sales and use taxes imposed under subch. III of ch.77, Stats., and is also applicable to the county and stadium sales and use taxes authorized under subch. V of ch. 77, Stats. In this chapter, unless otherwise specified:
SECTION 2. Tax 11.001(4) is renumbered Tax 11.001(5).
SECTION 3. Tax 11.001(4) is created to read:
Tax 11.001(4) “Stadium tax” means the local professional baseball park district sales or use tax authorized under subch. V of ch. 77, Stats.
SECTION 4. Tax 11.001(5) is repealed.
SECTION 5. Tax 11.001(6) is created to read:
Tax 11.001(6) “Taxable” and similar terms including “subject to the tax” and “tax applies” mean either of the following:
(a) The sales tax applies to a sale of tangible personal property or services, measured by the gross receipts from the sale.
(b) The use tax applies to the storage, use or other consumption of tangible personal property or services sold, measured by the sales price.
SECTION 6. Tax 11.002(title), (1) and (2)(c) are amended to read:
Tax 11.002 REGISTRATION (1) PURPOSE. The purpose of this section is to set forth the requirements to apply for a seller's permit, use tax registration certificate or consumers consumer's use tax registration certificate on the part of persons intending to operate as a seller at retail in this state, to collect use tax for the convenience of customers, or to report use tax; and to establish time limits within which the department will act on the application.
(2)(c) Consumer's use tax registration certificate. Every person not required to have a seller's permit or use tax registration certificate who regularly has use tax obligations because purchases are made without sales or use tax being charged by the seller shall have a consumers consumer's use tax registration certificate.
SECTION 7. Tax 11.002(2)(d) is created to read:
Tax 11.002(2)(d) Local exposition registration. Every person selling lodging, food, beverages and other items described in s. 77.54(20)(c)2. or renting automobiles subject to local exposition district taxes shall register with the department. Upon registration for local exposition district taxes, a separate seller's permit or use tax registration certificate only for local exposition district taxes will not be issued. The seller's permit or use tax registration certificate, as described in pars. (a) and (b), issued for sales and use tax purposes will apply for local exposition district tax purposes.
SECTION 8. Tax 11.002(3) and (4)(a) and (b) are amended to read:
Tax 11.002(3) APPLICATION FOR SELLER'S PERMIT OR USE TAX CERTIFICATES. A person required to have a seller's permit or one of the use tax certificates described in sub. (2)
or required to register for local exposition district taxes shall file an “Application for Permit”,/Certificate,” form A-101, with the department at the address shown on the form. The application shall include all information and fees required and shall be signed by the appropriate person described on the form. Security, as described in s. Tax 11.925, may be required.
Note to Revisor: Revise the note after sub. (3) to read as follows:
Note: Form A-101 may be obtained from any department of revenue office, or by writing or calling Wisconsin Department of Revenue, P.O. Box 8902, Madison, WI 53708-8902, telephone (608) 266-2776.
(4)(a) The approved permit is mailed by the department to the applicant, or.
(b) The department mails notification to the applicant that security is required or that the application is incomplete,
or incorrect, or more information is needed. The 15-day period shall reapply from the day all information necessary to make a determination, including payment of a required fee, or payment of security is received by the department, or.
Note to Revisor: Revise the note at the end of Tax 11.002 to read as follows:
Note: Section Tax 11.002 interprets ss. 66.75(1m)(f)5., 77.52(9) and (12), 77.53(9) and (9m), 77.61(2), 77.982(4), 77.991(4) and 227.116, Stats.
SECTION 9. Tax 11.01(1)(b) is amended to read:
Tax 11.01(1)(b) Form S-012. Also called form ST-12. The monthly, quarterly or annual return for each person
used to report state, county and stadium taxes by persons holding a Wisconsin seller's permit, use tax registration certificate or consumer's use tax registration certificate.
SECTION 10. Tax 11.01(1)(i), (j) and (k) are created to read:
Tax 11.01(1)(i) Form 9400-193. A department of natural resources form for occasional and dealer sales of boats.
(j) Form 9400-210. A department of natural resources form for occasional and dealer sales of snowmobiles.
(k) Form 9400-376. A department of natural resources form for occasional and dealer sales of all-terrain vehicles.
Note to Revisor: Revise the first note at the end of Tax 11.01 to read as follows:
Note: Forms may be obtained by writing or calling Wisconsin Department of Revenue, P.O. Box 8902, Madison, WI 53708-8902, telephone (608) 266-2776.
SECTION 11. Tax 11.35(title) is amended to read:
Tax 11.35 OCCASIONAL SALES BY NONPROFIT ORGANIZATIONS.
SECTION 12. Tax 11.35(1) and (2) are renumbered Tax 11.35(2) and (1) and, as renumbered, Tax 11.35(2)(b) is amended to read:
Tax 11.35(2)(b) “Entertainment” means entertainment provided at an admission event by all persons or groups who are paid in the aggregate more than $300 or more per event by all persons for performing, for reimbursement of expenses or for prize money.
SECTION 13. Tax 11.35(3), (5)(b) and (6)(a) are amended to read:
Tax 11.35(3) GENERAL. A nonprofit organization is required to shall charge Wisconsin sales tax on sales of tangible personal property and taxable services, unless the sales qualify as exempt occasional sales or are otherwise exempt. The occasional sales exemption does not apply to gross receipts from the sale of bingo supplies to players or to the sale, rental or use of regular bingo cards, extra regular cards and special bingo cards.
(5)(b) Its taxable gross receipts for the calendar year are $15,000 or less, regardless of the number of days on which its sales or events occur. Nontaxable gross receipts shall may not be included for purposes of the $15,000 gross receipts test.
(6)(a) To For a nonprofit organization's sales to qualify as an exempt occasional sale sales, entertainment shall may not be involved at an event for which charges by that nonprofit organization constitute admissions.
Note to Revisor: Add the following Example 5) to the examples that follow sub. (6)(a):
5) Nonprofit Organization A sponsors an admission event at which a band is hired to perform. The band is paid more than $300. Nonprofit Organization A allows Nonprofit Organization B, a separate entity, to sell soft drinks and food at the event for consumption on the premises of the event. Although Nonprofit Organization A's sales at the event do not qualify for the occasional sales exemption, Nonprofit Organization B's sales at the event may qualify as exempt occasional sales. The admission charge to the event involving entertainment is made by Nonprofit Organization A, not Nonprofit Organization B.
Note to Revisor: Delete the third note at the end of Tax 11.35 because it is obsolete, and replace the first and second notes with the following:
Note: To obtain a seller's permit, a nonprofit organization shall file Wisconsin form A-101, Application for Permit/Certificate, with the department. Form A-101 may be obtained from any department of revenue office, or by writing or calling Wisconsin Department of Revenue, P.O. box 8902, Madison, WI 53708-8902, telephone (608) 266-2776.
Note: The interpretations contained in s. Tax 11.35 became effective January 1, 1989, pursuant to 1989 Wis. Act 399.
SECTION 14. Tax 11.97(1) is amended to read:
Tax 11.97(1) GENERAL. (a) Out-of-state retailers are required to shall register and collect a state's use tax if the retailer is subject to the state's jurisdiction. The United States supreme court has resolved certain jurisdictional questions by interpreting the due process clause of the 14th Amendment to the U.S. Constitution. The court has said due process requires that there be some definite link, some minimum connection between the state and the person, property or transaction it seeks to tax. If this minimum connection, often called “nexus”
,” is established, the out-of-state seller is required to
shall register and collect the state's use tax.
(b) Some United States supreme court decisions concerning nexus include:
1. Nelson vs. Sears Roebuck & Co., 312 U.S. 359 (1941).
2. Nelson vs. Montgomery Ward & Co., 312 U.S. 373 (1941).
3. General Trading Co. vs. State Tax Commission of the State of Iowa, 322 U.S. 335 (1944).
4. Miller Bros. Co. vs. Maryland, 347 U.S. 340 (1954).
5. Scripto, Inc. vs. Carson, 362 U.S. 207 (1960).
6. National Bellas Hess, Inc. vs. Illinois Department of Revenue, 386 U.S. 753 (1967).
7. National Geographic Society vs. California Board of Equalization, 430 U.S. 551 (1977).
SECTION 15. Tax 11.97(6)(a) is renumbered Tax 11.97(6) and amended to read:
Tax 11.97(6) Every out-of-state retailer engaged in business in this state and not required to hold a seller's permit who makes sales for storage, use or other consumption in this state, except as provided in sub. (5), shall apply for a use tax registration certificate. The registration form is titled “Application for Permit”
, Form/Certificate,” form A-101. There is no fee for registration.
SECTION 16. Tax 11.97(6)(b) is repealed.
Note to Revisor: Replace the note at the end of Tax 11.97(6) with the following notes:
Note: Form A-101 may be obtained from any department of revenue office, or by writing or calling Wisconsin Department of Revenue, P.O. Box 8902, Madison, WI 53708-8902, telephone (608) 266-2776.
Note: Refer to s. Tax 11.002 for a description of use tax registration certificate requirements, how to apply for a use tax registration certificate and the 15-day time period within which the department is required to act on certificate applications.
Initial Regulatory Flexibility Analysis
The proposed rule order does not have a significant economic impact on a substantial number of small businesses.
Fiscal Estimate
The rule order updates the Administrative Code with respect to registering and reporting sales and use taxes.
Section 2 creates s. Tax 11.002 (2)(d) to reflect 1993 Wis. Act 263, which requires individuals who sell lodging, food or beverages, or rent automobiles subject to local exposition taxes to register with the Department of Revenue. Section 4 amends Tax 11.01 (1)(b) by requiring stadium taxes to be reported along with state and county sales and use taxes on Form ST-12. Section 5 creates Tax 11.01 (1) (L), (j) and (k) in order to establish forms to be used by the Department of Natural Resources for occasional sales of boats, snowmobiles and all-terrain vehicles.
Other changes create and amend titles, clarify existing language to reflect the Department's current position, modify punctuation, alter style and format to conform to Legislative Council Clearinghouse standards, and renumber rule sections to accommodate other rule changes.
These rule changes do not have a fiscal effect.
Notice of Hearing
Workforce Development
(Wage Rates, Chs. ILHR 290-294)
Notice is given that pursuant to s. 103.005 (1), Stats., the Department of Workforce Development proposes to hold a public hearing to consider the emergency rule revision of ch. DWD 290, Wis. Adm. Code, relating to Subjourneyperson Prevailing Wage Rates for State or Local Public Works Projects.
Hearing Information
June 19, 1997 201 E. Washington Ave.
Thursday Room 400X
9:30 a.m. Madison, WI
A copy of the rules to be considered may be obtained from the State Department of Workforce Development, Division of Equal Rights, 201 East Washington Avenue, P.O. Box 8928, Madison, Wisconsin 53708, by calling (608) 266-7560 or at the appointed time and place the hearing is held.
Interested persons are invited to appear at the hearing and will be afforded the opportunity of making an oral presentation of their positions. Persons making oral presentations are requested to submit their facts, views and suggested rewording in writing. Written comments from persons unable to attend the public hearing, or who wish to supplement testimony offered at the hearings may be submitted no later than June 27, 1997, for inclusion in the summary of public comments submitted to the Legislature. Any such comments should be submitted to Gary Shealy at the address noted above. Written comments will be given the same consideration as testimony presented at the hearing. Persons submitting comments will not receive individual responses.
This hearing is held in an accessible facility. If you have special needs or circumstances which may make communication or accessibility difficult at the hearing, please call (608) 266-7560 or Telecommunication Device for the Deaf (TDD) at (608) 264-8752 at least 10 days prior to the hearing date. Accommodations such as interpreters, English translators or materials in audio tape format will, to the fullest extent possible, be made available on request by a person with a disability.
Analysis
(1) Authority for rule: s.103.005(1), Stats., in conjunction with ss. 66.293, 103.49 and 103.50, Stats.
